Green v Wright [2015] EWHC 993 (Ch) (09 February 2015)

Green v Wright [2015] EWHC 993 (Ch) (09 February 2015)

The effect of paragraph 9(2) of the IVA Standard Conditions is that, upon issue of a completion certificate, the debtor is released from all debts subject to the arrangement, there are no longer any creditors or beneficiaries, and the trusts created by the arrangement come to an end. Therefore, the PPI proceeds received after completion must be paid to the former debtor, not distributed to former creditors.

Citation
[2015] EWHC 993 (Ch)
Parties
Appellant: James Green; Respondent: James Patrick Wright
Jurisdiction
England and Wales
Judgment Date
09 February 2015
Procedural Posture
Insolvency Appeal / Appeal From County Court Decision to High Court (chancery Division)
Outcome
Appeal dismissed
Legal Topics
Individual Voluntary Arrangement (iva), Trusts in Insolvency, Completion Certificate Effect, After Acquired Assets, Distribution of Mis Sold PPI Compensation
Insolvency Law Individual Voluntary Arrangement (iva) Trusts in Insolvency Completion Certificate Effect After Acquired Assets Distribution of Mis Sold PPI Compensation

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Parties

James Green

Appellant

James Patrick Wright

Respondent

Procedural Posture

Insolvency Appeal / Appeal From County Court Decision to High Court (chancery Division)

Legal Issues

  1. 1 Whether proceeds of PPI mis-selling received after completion of an IVA should be distributed to former creditors or paid to the former debtor
  2. 2 Whether the trusts created by the IVA survive the issue of a completion certificate in the absence of breach

Ratio Decidendi

The effect of paragraph 9(2) of the IVA Standard Conditions is that, upon issue of a completion certificate, the debtor is released from all debts subject to the arrangement, there are no longer any creditors or beneficiaries, and the trusts created by the arrangement come to an end. Therefore, the PPI proceeds received after completion must be paid to the former debtor, not distributed to former creditors.

Court Disposition

Appeal dismissed

Orders

  • Time for appealing extended
  • Permission to appeal granted